Nigeria: Shell Takes Final Investment Decision on New Gas Project

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The Shell Petroleum Development Company of Nigeria Limited have announced that the final investment decision had been taken on Assa North Gas Development Project in Imo State.

The SPDC described the development as a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation.

According to the statement, at peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network.

The Managing Director, SPDC and Country Chair, Shell Companies in Nigeria, Mr Osagie Okunbor, noted that the project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth.

He said, “This is good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints.

“The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier among the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation. Their integrated focus, support and drive were instrumental to this investment decision.”

Okunbor added that the SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.

SPDC’s Director and General Manager, Projects, Mr Toyin Olagunju, said the Assa North project would be a significant contribution to GDP growth in Imo State and across Nigeria as the gas produced would be utilised in-country across diverse industries while providing economic opportunities for local communities.

The SPDC JV signed a gas supply and aggregation agreement earlier this month with Geometric Power Aba Limited for the supply of about 43 million standard cubic feet of gas per day to support the 140 megawatts Aba Integrated Power Plant at Ossisioma in Abia State.

By the agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers states to the power producer, GPAL, via a gas pipeline network which is already installed.

SPDC is the operator of a joint venture involving the Nigerian National Petroleum Corporation, which holds 55 per cent; Shell, 30 per cent; Total Exploration and Production Nigeria Limited, 10 per cent; and Nigerian Agip Oil Company Limited, five per cent.

Authored By: Femi Asu

SOURCE: PUNCH

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